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b. True or False. "A rational consumer will purchase only 1 unit of the product represented by these data, because that amount maximizes marginal utility." O False, because rational consumers maximize total utility. False, because marginal utility is constant after consuming the first unit. True, because rational consumers maximize marginal utility. O True, because marginal utility falls after consuming the first unit. c. True or False. "It is possible that a rational consumer will not purchase any units of the product represented by these data." O True, because this product's price could be high relative to the first unit's marginal utility. O False, because this product's price could be low relative to the first unit's total utility. O True, because this product's price could be high relative to the first unit's total utility. O False, because this product's price could be low relative to the first unit's marginal utility.

b. True or False. "A rational consumer will purchase only 1 unit of the product represented by these data, because that amount maximizes marginal utility." O False, because rational consumers maximize total utility. False, because marginal utility is constant after consuming the first unit. True, because rational consumers maximize marginal utility. O True, because marginal utility falls after consuming the first unit. c. True or False. "It is possible that a rational consumer will not purchase any units of the product represented by these data." O True, because this product's price could be high relative to the first unit's marginal utility. O False, because this product's price could be low relative to the first unit's total utility. O True, because this product's price could be high relative to the first unit's total utility. O False, because this product's price could be low relative to the first unit's marginal utility.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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b. True or False. “A rational consumer will purchase only 1 unit of the product represented by these data, because that amount maximizes marginal utility." False, because rational consumers maximize total utility. O False, because marginal utility is constant after consuming the first unit. O True, because rational consumers maximize marginal utility. O True, because marginal utility falls after consuming the first unit. c. True or False. "It is possible that a rational consumer will not purchase any units of the product represented by these data." True, because this product's price could be high relative to the first unit's marginal utility. False, because this product's price could be low relative to the first unit's total utility. O True, because this product's price could be high relative to the first unit's total utility. O False, because this product's price could be low relative to the first unit's marginal utility. Prey 7 of 10 Next >
Transcribed Image Text:b. True or False. “A rational consumer will purchase only 1 unit of the product represented by these data, because that amount maximizes marginal utility." False, because rational consumers maximize total utility. O False, because marginal utility is constant after consuming the first unit. O True, because rational consumers maximize marginal utility. O True, because marginal utility falls after consuming the first unit. c. True or False. "It is possible that a rational consumer will not purchase any units of the product represented by these data." True, because this product's price could be high relative to the first unit's marginal utility. False, because this product's price could be low relative to the first unit's total utility. O True, because this product's price could be high relative to the first unit's total utility. O False, because this product's price could be low relative to the first unit's marginal utility. Prey 7 of 10 Next >
Complete the following table and answer the questions below: Instructions: Enter your answers as a whole number. Units Consumed 0 1 2 3 4 5 6 Total Utility 0 10 4 25 30 34 Marginal Utility 10 8 3 a. At which rate is total utility increasing: a constant rate, a decreasing rate, or an increasing rate? How do you know? A constant rate, because marginal utility is increasing. A decreasing rate, because marginal utility is declining. O An increasing rate, because marginal utility is declining.
Transcribed Image Text:Complete the following table and answer the questions below: Instructions: Enter your answers as a whole number. Units Consumed 0 1 2 3 4 5 6 Total Utility 0 10 4 25 30 34 Marginal Utility 10 8 3 a. At which rate is total utility increasing: a constant rate, a decreasing rate, or an increasing rate? How do you know? A constant rate, because marginal utility is increasing. A decreasing rate, because marginal utility is declining. O An increasing rate, because marginal utility is declining.
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